UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: October 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37502 MASTERCRAFT BOAT HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction (I.R.S. Employe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 100 Cherokee Cove Drive, Vonore, TN 37885 (Address of Principal Executive Of ice) (Zip Code) (423) 884-2221 (Registrant's telephone number, including area code) For the transition period from to Securities re ...

FISCAL FOURTH QUARTER & 2023 RESULTS 1 5 FISCAL YEAR ADJUSTED NET INCOME RECONCILIATION indicated: 4) Represents the Weighted Average Shares used for the computation of Basic and Diluted earnings per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income per diluted share for all periods presented herein. 1 6 FISCAL YEAR FREE CASH FLOW RECONCILIATION accordance with U.S. GAAP to free cash flow for the periods indicated: The following table sets forth a reconciliatio ...

MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) Q3 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Tim Oxley - Vice President, Chief Financial Officer, Treasurer and Secretary Fred Brightbill - Chairman and Chief Executive Officer George Steinbarger - Chief Revenue Officer Conference Call Participants Joe Altobello - Raymond James Craig Kennison - Baird Gerrick Johnson - BMO Capital Markets Noah Zatzkin - KeyBanc Capital Markets Operator Good day, and thank you for standing by. Welc ...

PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited consolidated financial statements for April 2, 2023, show mixed sales trends, increased net income from continuing operations for the nine-month period, and asset growth to **$338.3 million**, with strong operating cash flow of **$107.4 million** [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Net sales for the three months ended April 2, 2023, decreased by **1.5%** to **$166.8 million**, while nine-month net sales increased by **11.5%** to **$495.5 million**, reflecting the impact of discontinued operations Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Nine Months Ended April 2, 2023 | Nine Months Ended April 3, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $166,776 | $169,343 | $495,480 | $444,393 | | **Gross Profit** | $42,598 | $44,074 | $126,798 | $111,017 | | **Operating Income** | $29,026 | $31,604 | $87,709 | $71,603 | | **Net Income from Continuing Operations** | $22,782 | $24,306 | $67,400 | $54,397 | | **Loss from Discontinued Operations, Net of Tax** | $(272) | $(3,371) | $(21,139) | $(7,674) | | **Net Income** | $22,510 | $20,935 | $46,261 | $46,723 | | **Diluted EPS (Continuing Operations)** | $1.28 | $1.31 | $3.78 | $2.89 | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$338.3 million** as of April 2, 2023, driven by investments in held-to-maturity securities, while total stockholders' equity significantly grew to **$176.1 million** Balance Sheet Highlights (in thousands) | Metric | April 2, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $27,453 | $34,203 | | Held-to-maturity securities | $73,914 | $0 | | Inventories, net | $55,268 | $58,595 | | **Total Assets** | **$338,274** | **$297,052** | | Total current liabilities | $102,991 | $93,172 | | Long-term debt, net | $50,391 | $53,676 | | **Total Liabilities** | **$162,127** | **$153,404** | | **Total Stockholders' Equity** | **$176,147** | **$143,648** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for the nine months ended April 2, 2023, was **$107.4 million**, with significant cash used in investing activities for held-to-maturity securities and capital expenditures Cash Flow Summary (in thousands) | Activity | Nine Months Ended April 2, 2023 | Nine Months Ended April 3, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $104,962 | $35,302 | | Net cash used in investing activities | $(92,881) | $(10,839) | | Net cash used in financing activities | $(18,831) | $(49,949) | | **Net Change in Cash and Cash Equivalents** | **$(6,750)** | **$(25,486)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the **$22.5 million** loss from the NauticStar segment sale, **$73.9 million** in held-to-maturity securities, segment revenue breakdowns, and **$16.0 million** in stock repurchases - On September 2, 2022, the company sold its NauticStar business. The disposal is reported as discontinued operations, and a loss on sale of **$22.5 million** was recognized during the nine months ended April 2, 2023[27](index=27&type=chunk)[32](index=32&type=chunk)[35](index=35&type=chunk) - The company invested excess cash in short-term, investment-grade corporate bonds, classified as held-to-maturity. As of April 2, 2023, these investments totaled **$73.9 million** at amortized cost[37](index=37&type=chunk)[38](index=38&type=chunk) - As of April 2, 2023, the company had **$54.8 million** in term loan debt outstanding and full availability of its **$100.0 million** revolving credit facility[47](index=47&type=chunk)[53](index=53&type=chunk) - Under its stock repurchase program, the company bought back **625,794 shares** for **$16.0 million** during the nine months ended April 2, 2023. Approximately **$8.6 million** remained available for repurchase[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 net sales decrease due to mix and incentives, nine-month sales growth from pricing, gross margin trends, segment performance, strong operating cash flow of **$107.4 million**, and macroeconomic risks - The company completed the sale of its NauticStar business on September 2, 2022, and is reporting it as discontinued operations. All analysis is presented on a continuing operations basis[74](index=74&type=chunk) - Management notes that while wholesale performance has been strong as dealers replenish inventory, they expect future wholesale demand to align more closely with retail demand, which may be impacted by macroeconomic uncertainty[75](index=75&type=chunk)[76](index=76&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Nine Months Ended April 2, 2023 | Nine Months Ended April 3, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income from continuing operations | $22,782 | $24,306 | $67,400 | $54,397 | | **Adjusted EBITDA** | **$32,986** | **$35,005** | **$98,746** | **$82,959** | | Adjusted EBITDA Margin | 19.8% | 20.7% | 19.9% | 18.7% | Adjusted Net Income and Diluted EPS | Metric | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Nine Months Ended April 2, 2023 | Nine Months Ended April 3, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Income** | $24,121 | $25,117 | $71,104 | $58,471 | | **Adjusted Net Income per Diluted Share** | $1.36 | $1.36 | $3.98 | $3.11 | [Results of Continuing Operations](index=19&type=section&id=Results%20of%20Continuing%20Operations) Q3 FY2023 consolidated net sales decreased **1.5%** to **$166.8 million** due to mix and incentives, while nine-month sales increased **11.5%** to **$495.5 million** primarily from pricing - Q3 net sales decrease was caused by changes in model mix, decreased sales volumes, and increased dealer incentives, partially offset by higher prices[80](index=80&type=chunk) - Nine-month net sales increase was driven by higher prices and increased options sales, partially offset by changes in model mix and increased dealer incentives[81](index=81&type=chunk) - Q3 gross margin decreased **50 bps** due to higher costs from inflation, mix changes, and higher dealer incentives, which were partially offset by price increases and improved production efficiencies[82](index=82&type=chunk) [Segment Results](index=21&type=section&id=Segment%20Results) Q3 FY2023 saw MasterCraft sales decline **1.9%** and Crest sales drop **6.6%**, while Aviara sales grew **22.5%**, significantly reducing its operating loss MasterCraft Segment Q3 FY2023 vs Q3 FY2022 (in thousands) | Metric | Q3 2023 | Q3 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $117,630 | $119,956 | $(2,326) | (1.9%) | | Operating Income | $25,298 | $28,051 | $(2,753) | (9.8%) | Crest Segment Q3 FY2023 vs Q3 FY2022 (in thousands) | Metric | Q3 2023 | Q3 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $36,369 | $38,959 | $(2,590) | (6.6%) | | Operating Income | $4,962 | $5,568 | $(606) | (10.9%) | Aviara Segment Q3 FY2023 vs Q3 FY2022 (in thousands) | Metric | Q3 2023 | Q3 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $12,777 | $10,428 | $2,349 | 22.5% | | Operating Loss | $(1,234) | $(2,015) | $781 | 38.8% | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$27.5 million** in cash, **$73.9 million** in held-to-maturity securities, and a **$100.0 million** available revolving credit facility - As of April 2, 2023, the company had **$27.5 million** in cash and cash equivalents and **$73.9 million** in held-to-maturity securities[111](index=111&type=chunk) - The company has full availability of its **$100.0 million** Revolving Credit Facility with no amounts outstanding as of April 2, 2023[112](index=112&type=chunk) - During the nine months ended April 2, 2023, the company repurchased **625,794 shares** of common stock for **$16.0 million**[113](index=113&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk primarily stems from its held-to-maturity fixed income securities, but no impairment losses are anticipated due to their investment-grade quality and short-term nature - The company's market risk is primarily related to its investment portfolio of fixed income securities[121](index=121&type=chunk) - Due to the investment-grade quality, short-term nature, and held-to-maturity classification of its securities, the company does not anticipate recognizing impairment losses[121](index=121&type=chunk)[122](index=122&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of April 2, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of April 2, 2023[124](index=124&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended April 2, 2023[125](index=125&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings for the period - None[126](index=126&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported during the period - No material changes to risk factors were reported during the three months ended April 2, 2023[127](index=127&type=chunk) [Unregistered Sales of Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **210,150 shares** for approximately **$7.0 million** in Q3 FY2023, with **$8.6 million** remaining under the stock repurchase program Share Repurchases (Q3 FY2023) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2 - Jan 29, 2023 | — | $— | | Jan 30 - Feb 26, 2023 | 59,865 | $33.66 | | Feb 27 - Apr 2, 2023 | 150,285 | $33.14 | | **Total** | **210,150** | **$33.29** | - As of April 2, 2023, the remaining authorization under the stock repurchase program was approximately **$8.6 million**[128](index=128&type=chunk) [Exhibits, Financial Statement Schedules](index=28&type=section&id=Item%206.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications and Inline XBRL data files[134](index=134&type=chunk)

MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) Q2 2023 Earnings Conference Call February 8, 2023 8:30 AM ET Company Participants Tim Oxley - Chief Financial Officer Fred Brightbill - Chairman & Chief Executive Officer George Steinbarger - Chief Revenue Officer Conference Call Participants Joe Altobello - Raymond James Craig Kennison - R.W. Baird Drew Crum - Stifel Eric Wold - B. Riley Securities Michael Swartz - Truist Securities Operator Good day and thank you for standing by. Welcome to the Q2 2023 MasterC ...

{ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: January 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37502 MASTERCRAFT BOAT HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction (I.R.S. Emplo ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37502 MASTERCRAFT BOAT HOLDINGS, INC. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: October 2, 2022 OR of Incorporation or Organization) Identifica ...

MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) Q1 2023 Results Conference Call November 9, 2022 8:30 AM ET Company Participants Fred Brightbill - CEO & Chairman Tim Oxley - CFO George Steinbarger - Chief Revenue Officer Conference Call Participants Joe Altobello - Raymond James Michael Swartz - Drew Securities Alice Wycklendt - Baird Operator Good day, and thank you for standing by. Welcome to the First Quarter 2023 MasterCraft Boat Holdings, Inc. Earnings Conference Call. [Operator Instructions] Please be a ...

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) MasterCraft Boat Holdings is a leading designer and manufacturer of recreational powerboats across four brands, distributing through a global dealer network [Our Segments and Products](index=4&type=section&id=Item%201.%20Business%20-%20Our%20Segments%20and%20Products) The company operates four distinct brand segments targeting specific powerboat categories, with a recent strategic exit from the NauticStar business - The company operates a diversified portfolio of four brands: MasterCraft, Crest, NauticStar, and Aviara, targeting leading positions in the ski/wake, pontoon, and outboard saltwater fishing categories, while also entering the luxury day boat segment[19](index=19&type=chunk)[20](index=20&type=chunk) - On August 9, 2022, the company announced it was evaluating strategic alternatives for its NauticStar business, with the intention of exiting it; the sale was completed on September 2, 2022[24](index=24&type=chunk)[25](index=25&type=chunk]) Product Portfolio and Retail Price Ranges | Brand | Product Type | Retail Price Range (Approx.) | | :--- | :--- | :--- | | **MasterCraft** | Premium ski/wake boats | $90,000 - $300,000 | | **Crest** | Pontoon boats | $35,000 - $220,000 | | **NauticStar** | Saltwater fishing, deck, bay boats | $50,000 - $275,000 | | **Aviara** | Luxury day boats | $430,000 - >$1,000,000 | [Dealer Network and Manufacturing](index=5&type=section&id=Item%201.%20Business%20-%20Dealer%20Network%20and%20Manufacturing) Products are sold through an extensive independent dealer network and produced in four dedicated, brand-specific manufacturing facilities - The company's top ten dealers accounted for approximately **30% of net sales in fiscal 2022**, with no single dealer representing more than 10%[35](index=35&type=chunk) - The company operates four manufacturing facilities: MasterCraft in Vonore, TN (285,000 sq-ft); Crest in Owosso, MI (150,000 sq-ft); NauticStar in Amory, MS (225,000 sq-ft); and Aviara in Merritt Island, FL (140,000 sq-ft)[41](index=41&type=chunk) Dealer Network Locations as of June 30, 2022 | Brand | North America Dealers | North America Locations | International Dealers | International Locations | | :--- | :--- | :--- | :--- | :--- | | **MasterCraft** | 112 | 152 | 41 | 41 | | **Crest** | 132 | 161 | 2 | 2 | | **NauticStar** | 110 | 119 | 2 | 2 | | **Aviara** | 1 | 79 | 0 | 0 | [Suppliers, R&D, and Competition](index=7&type=section&id=Item%201.%20Business%20-%20Suppliers%2C%20R%26D%2C%20and%20Competition) The company relies on key suppliers like Ilmor Engineering, invests in R&D, and holds a 1 market share in the ski/wake category - Ilmor Engineering, Inc is the exclusive engine supplier for the MasterCraft brand and was the company's largest overall supplier in fiscal 2022[46](index=46&type=chunk) Research and Product Development Expense | Fiscal Year | Expense (in millions) | | :--- | :--- | | **2022** | $8.2 | | **2021** | $6.8 | | **2020** | $5.2 | Market Share by Brand (as of Dec 2021, based on SSI data) | Brand | Category | Market Share | Rank | | :--- | :--- | :--- | :--- | | **MasterCraft** | Ski/Wake | 21.3% | 1 | | **Crest** | Pontoon | 4.0% | 9 | | **NauticStar** | Deck & Saltwater Fishing | 4.3% | 8 | | **Aviara** | 30-43ft Bowrider | 5.7% | 7 | [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from economic downturns, supply chain dependencies, dealer network stability, and potential asset impairment - The business is cyclical and highly sensitive to economic conditions, as consumers may defer spending on non-essential items like recreational boats during periods of economic uncertainty[64](index=64&type=chunk) - The company relies on a complex global supply chain and has sole or limited suppliers for critical components like engines, windshields, and towers, making it vulnerable to disruptions and price fluctuations[86](index=86&type=chunk)[87](index=87&type=chunk) - Substantially all sales are through a network of independent dealers; the loss of key dealers, dealer consolidation, or the financial instability of dealers could materially harm the business[95](index=95&type=chunk) - As of June 30, 2022, the company had **$54.5 million in goodwill and indefinite-lived intangible assets** (approximately 18% of total assets), which are subject to impairment risk if future operating performance declines[122](index=122&type=chunk) [Item 1B. Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[138](index=138&type=chunk) [Item 2. Properties](index=23&type=section&id=Item%202.%20Properties) The company owns four primary manufacturing facilities in Tennessee, Michigan, Mississippi, and Florida for its respective brands Owned Manufacturing Facilities as of June 30, 2022 | Brand | Location | Facility Size (sq-ft) | | :--- | :--- | :--- | | **MasterCraft** | Vonore, TN | 285,000 | | **Crest** | Owosso, MI | 150,000 | | **NauticStar** | Amory, MS | 225,000 | | **Aviara** | Merritt Island, FL | 140,000 | [Item 3. Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) Details regarding legal proceedings are available in Note 10 to the Consolidated Financial Statements - For a discussion of the Company's legal proceedings, see Part IV – Item 15 – Note 10 Commitments and Contingencies to the Company's Consolidated Financial Statements[140](index=140&type=chunk) [Item 4. Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[141](index=141&type=chunk) Part II [Item 5. Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%20and%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on NASDAQ under "MCFT" and it executed a $25.5 million stock repurchase in fiscal 2022 - The company's common stock is traded on the NASDAQ Global Market under the symbol "MCFT"[144](index=144&type=chunk) - The company does not currently anticipate declaring or paying cash dividends on its common stock[145](index=145&type=chunk) - During fiscal year 2022, the company repurchased approximately **$25.5 million of its common stock**, leaving approximately **$24.5 million available** under its repurchase program[146](index=146&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2022 saw record net sales of $707.9 million, though margins were pressured by inflation and impairment charges [Consolidated Results of Operations](index=28&type=section&id=Item%207.%20MD%26A%20-%20Consolidated%20Results%20of%20Operations) Net sales grew 34.6% to $707.9 million, but operating income was flat due to a 180 basis point margin decline and impairment charges - Gross margin declined by **180 basis points** in fiscal 2022, primarily due to supply chain disruptions, labor challenges, and inflationary pressures that increased material and overhead costs, most pronounced at the NauticStar segment[164](index=164&type=chunk)[165](index=165&type=chunk) - Operating expenses increased by 56.4% in fiscal 2022, mainly driven by **impairment charges of $24.9 million** ($1.1M for Aviara goodwill, $23.8M for NauticStar intangibles and fixed assets)[166](index=166&type=chunk) Consolidated Financial Highlights (Fiscal Year Ended June 30) | Metric (in thousands, except %) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $707,862 | $525,808 | 34.6% | | **Gross Profit** | $162,362 | $129,971 | 24.9% | | **Operating Income** | $77,857 | $75,953 | 2.5% | | **Net Income** | $58,214 | $56,170 | 3.6% | | **Consolidated Unit Sales** | 8,217 | 7,197 | 14.2% | [Segment Results](index=29&type=section&id=Item%207.%20MD%26A%20-%20Segment%20Results) The MasterCraft and Crest segments drove profit growth, while NauticStar and Aviara recorded operating losses due to impairments MasterCraft Segment Performance (FY2022 vs FY2021) | Metric (in thousands) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $466,027 | $350,812 | 32.8% | | **Operating Income** | $105,341 | $73,354 | 43.6% | Crest Segment Performance (FY2022 vs FY2021) | Metric (in thousands) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $140,859 | $102,688 | 37.2% | | **Operating Income** | $19,892 | $13,605 | 46.2% | NauticStar & Aviara Segment Performance (FY2022) | Segment | Net Sales (in thousands) | Operating Loss (in thousands) | Impairments (in thousands) | | :--- | :--- | :--- | :--- | | **NauticStar** | $66,253 | $(38,338) | $23,833 | | **Aviara** | $34,723 | $(9,038) | $1,100 | [Non-GAAP Measures](index=32&type=section&id=Item%207.%20MD%26A%20-%20Non-GAAP%20Measures) Adjusted EBITDA grew to $121.1 million and Adjusted Net Income reached $84.6 million, excluding impairments and other items Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | 2022 | 2021 | | :--- | :--- | :--- | | **Net income** | $58,214 | $56,170 | | Adjustments: | | | | Interest, Taxes, D&A | $33,257 | $30,680 | | Impairments | $24,933 | $0 | | Share-based compensation | $3,458 | $2,984 | | Other adjustments | $1,216 | $2,919 | | **Adjusted EBITDA** | **$121,078** | **$92,753** | Reconciliation of Net Income to Adjusted Net Income (in thousands, except per share) | | 2022 | 2021 | | :--- | :--- | :--- | | **Net income** | $58,214 | $56,170 | | Adjustments (pre-tax) | $33,488 | $9,745 | | Tax effect of adjustments | $(8,117) | $(3,004) | | **Adjusted Net Income** | **$84,603** | **$62,811** | | **Adjusted Net Income per diluted share** | **$4.54** | **$3.31** | [Liquidity and Capital Resources](index=36&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with $73.3 million in operating cash flow, used for debt repayment and stock repurchases - Financing activities in FY2022 included **$36.7 million in net payments on long-term debt** and **$25.5 million in stock repurchases**[206](index=206&type=chunk) - As of June 30, 2022, the company had repaid all amounts on its Revolving Credit Facility, leaving **$100.0 million of available borrowing capacity**[202](index=202&type=chunk) Cash Flow Summary (Fiscal Year Ended June 30, in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Operating activities** | $73,311 | $68,538 | | **Investing activities** | $(15,820) | $(27,832) | | **Financing activities** | $(62,540) | $(17,773) | | **Net change in cash** | $(5,049) | $22,933 | [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are inflation impacting material costs and interest rate fluctuations on its $57.0 million of debt - The company is primarily exposed to inflation risk, which increases the cost of raw materials, and interest rate risk on its variable-rate debt[235](index=235&type=chunk)[236](index=236&type=chunk) - As of June 30, 2022, the company had **$57.0 million of long-term debt**; a hypothetical 1% increase or decrease in interest rates would have resulted in a **$0.7 million change to interest expense** for fiscal 2022[237](index=237&type=chunk) [Item 9A. Controls and Procedures](index=40&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal controls were effective as of June 30, 2022 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[241](index=241&type=chunk) - Management concluded that internal control over financial reporting was effective as of June 30, 2022, based on the criteria set forth by COSO; this was audited and confirmed by the independent registered public accounting firm[243](index=243&type=chunk)[244](index=244&type=chunk) [Item 9B. Other Information](index=41&type=section&id=Item%209B.%20Other%20Information) The company completed the sale of its NauticStar business on September 2, 2022, expecting a loss between $20.0 and $23.0 million - The company completed the sale of its NauticStar business on September 2, 2022, and expects to record a **loss on sale between $20.0 million and $23.0 million**[246](index=246&type=chunk) Part III [Items 10-14. Directors, Executive Compensation, Security Ownership, and Accountant Fees](index=42&type=section&id=Items%2010-14) Information on directors, compensation, ownership, and accountant fees is incorporated by reference from the 2022 proxy statement - Information required by Items 10, 11, 12, 13, and 14 will be included in the Proxy Statement for the 2022 annual meeting of stockholders and is incorporated herein by reference[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=43&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section contains the audited financial statements, which received an unqualified opinion with a critical audit matter on warranty liability - The independent auditor, Deloitte & Touche LLP, issued an **unqualified opinion** on the consolidated financial statements and the company's internal control over financial reporting as of June 30, 2022[266](index=266&type=chunk)[277](index=277&type=chunk) - The auditor identified the **accrued warranty liability for the MasterCraft brand as a Critical Audit Matter** due to the significant management judgments required to estimate future claim rates and costs[272](index=272&type=chunk) Consolidated Balance Sheet Summary (as of June 30, in thousands) | | 2022 | 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $146,110 | $110,227 | | **Total Assets** | $297,052 | $276,460 | | **Total Current Liabilities** | $93,172 | $74,289 | | **Total Liabilities** | $153,404 | $168,672 | | **Total Stockholders' Equity** | $143,648 | $107,788 | Consolidated Statement of Operations Summary (Year Ended June 30, in thousands) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Net Sales** | $707,862 | $525,808 | $363,073 | | **Gross Profit** | $162,362 | $129,971 | $75,356 | | **Operating Income (Loss)** | $77,857 | $75,953 | $(26,567) | | **Net Income (Loss)** | $58,214 | $56,170 | $(24,047) | | **Diluted EPS** | $3.12 | $2.96 | $(1.28) |